Are you a real estate investor looking at investing in notes (or more notes)? If so, you might be wondering how to avoid going broke buying real estate notes. After all, notes are a simple, fun way to invest in real estate without a lot of the downside and headaches that other investors experience. Keep reading to find out the answer…

We meet a lot of investors. Some are just dipping their toe into the ocean of note investing – they might have questions or are even skeptical about how it all works. But many investors are the complete opposite – they love investing in notes and go all-in… sometimes even investing “too much” (for them) in notes.

If you’re a note investor (or you want to be) and you’re worried about this happening to you, here’s how to avoid going broke buying real estate notes.

How To Avoid Going Broke Buying Real Estate Notes

#1. Set A Limit Of Money You Can Invest

Maybe you have some money set aside that you can invest. Don’t forget that you have other expenses, too, and you should always be able to cover your expenses. After all, you’re probably investing to take care of your family, so doesn’t it make sense to make sure you take care of your family even before your investments provide a return? Set a hard limit and hold yourself to it. If you’re worried that you won’t be able to hold yourself to your limit then get a trusted friend to help you.

#2. Get Cash Flowing Notes Only

One way to ensure you don’t go broke buying notes is to invest in cash flowing notes. That way, even if you spend a large amount of your investable capital on notes, they’ll put cash back in your pocket so you will reduce the possibility of going broke because you are generating an income from your notes.

#3. Only Invest A Certain Percentage Of Your Income

If you’ve invested some or all of your existing investable capital, and you still want to invest in more real estate notes, then set a certain percentage of your income for notes and don’t go over that percentage. If you set aside some money and it’s not enough to buy a note then keep accumulating the money, paycheck after paycheck, until you’ve saved enough.

Summary

If you have to go broke buying something, it’s probably better to buy investments! However, we would never suggest you go broke buying real estate notes because you likely have other responsibilities. Therefore, follow these 3 strategies to help you avoid going broke when buying real estate notes.

If you want to see what real estate notes are available to invest in, you’ll love our selection of available notes. So just reach out to us by phone at 505.404.1131 or by clicking here to fill out the form. We’ll be in touch and make sure that you get access to our list of notes to buy.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Need To Sell Your House Fast?

We buy houses in ANY CONDITION! We pay CASH and you will not pay any commissions, agents, or fees. Put your address and email below and answer 5 easy questions on the next page to get a cash offer in 24 hours!

The Note Holder’s Handbook

Get Your ABSOLUTELY FREE Copy of “The Note Holder’s Handbook” How To Structure Your Seller Carry Back Notes… And Avoid All The Costly Mistakes Most Sellers Make When Choosing To Sell With Owner Financing.

All properties are sold for cash or hard money. Buyers responsibility to do your own due diligence and verify all information. Prices are NET to seller with buyer paying all closing costs. Opinions of value/rents are given as a courtesy and no guarantees are expressed or implied. Our properties move fast so contact us quickly if there is a property you want to purchase. This is not a solicitation or offer of securities. Investment is offered only to qualified investors through a written Investment Agreement or Private Placement Memorandum. Disclosure: Although I am a licensed real estate agent, I am not soliciting you to list your property or represent you. I am acting as a buyer/investor and only represent myself in any transaction. Mountain View Realty, LLC # 19613